Revenue insurance purchase decisions of farmers

Ashok K. Mishra, Barry K. Goodwin

Research output: Contribution to journalArticlepeer-review

31 Scopus citations


The objective of this study is to evaluate farm, household, and financial characteristics of cash grain farmers' decisions of whether to purchase revenue insurance. Using farm-level data these characteristics were identified by estimating a logit model of revenue insurance purchase decisions by farm operators. Results indicate that farm operators with the ability to self-insure through accumulation of sufficient wealth reserves measured in terms of the ratio of debts-to-assets, operators with off-farm income, and participation in production and marketing contracts, are more likely to pursue these strategies as a substitute for federal revenue insurance programmes. Further, study finds that older and wealthy cash grain farmers are less likely to buy revenue insurance.

Original languageEnglish (US)
Pages (from-to)149-159
Number of pages11
JournalApplied Economics
Issue number2
StatePublished - Feb 10 2006
Externally publishedYes

ASJC Scopus subject areas

  • Economics and Econometrics


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